I’m Locked Down – Local Businesses Will Be Gone

I’m in one of those “shelter-in-place” counties in the Bay Area. I suspect a lot of people don’t get it until they’re actually in it. Every business is closed except certain essential services like groceries. You need to see it to believe it (risking being puled over if you drive to see it, though.)

The first thing to say about it is, we’re in lockdown and most of the country is not. That means the virus will continue to spread and until everyone is locked down it can circle back to us, so we’ll be staying in lockdown. (I’m sure China feels this way right now.)

The second thing I see that I think people not in lockdown don’t see, a significant number of local businesses are going to run out of money very soon. They’re closed. Lots of smaller businesses are notoriously undercapitalized, just like how lots of people can’t come up with $500 for an emergency. So this means sending cash to people is NOT going to help these businesses because “more people with money coming through the door” doesn’t work if the door is closed in a lockdown. Again: A significant number of local businesses will not be coming back.

Remember how financiers bought up foreclosed houses after the 2008 crash? And now we have a rent crisis? That is what will happen to local/regional businesses if we don’t have a plan ready to put the local owners back in business. The giant companies will be getting bailouts. Wall Street is itching to use their bailout money to buy up these businesses. We need a plan.